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Level 1

Reclassifying transactions to assign Customer

Hi.  I am setting up QB Desktop 2018 for a Real Estate "Flip" developer who also has rental properties.  We hire a general contractor to handle construction, so we only manage approvals, insurance, architect, GC contract, etc. ... and sales.  We contract our property management on rentals. Many LLC's are created for groups of properties, often single-family homes to eventually sell.  I set up Properties (Flips) as Customers and need to assign old cost to the Customers I created (all costs charged to Balance Sheet, until sold, then Net to Income Statement).  How can I reclassify costs to get clean reports (B/S) for each property.  They QB version I have includes Reclassification Option (with the 2 window screen).   Thanks!!  JB

1 Comment
Level 15

Reclassifying transactions to assign Customer

property you own is a fixed asset, and that where cost is broken down
>> land cost
>> improvement cost
>> >> accumulated depreciation improvements


the property as a customer is so you can track tenants, and rental income and expense

property being worked on for a flip, is a WIP asset account where you accumulate the total costs for the property, when ready for sale that WIP asset account balance is moved to a fixed asset account for that property, or to an inventory item if there is no chance you will use it as a rental

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